Overview

• Gol’s controller Abra formally notified Azul that negotiations for a business combination are over and requested termination of the May 2024 codeshare.
• Both airlines said tickets already issued under the partnership will be honored, with new codeshare sales halted as systems are updated.
• Abra said there were no significant discussions for months as Azul focused on its U.S. Chapter 11 process, noting conditions have changed since the January MOU and CADE prefiling.
• Shares jumped after the announcement, with Azul closing up 17.14% at R$1.23 and Gol up 5.31% at R$5.95 on Friday.
• Brazil’s Ports and Airports Ministry said the market keeps three major players, as CADE’s scrutiny of the codeshare and a potential 60% combined share had raised competition concerns.